Serco shares jumped as it was described as a “winner” in the hunt for public sector outsourcing deals.

Serco was up 10p at 566p as broker Panmure praised its retaining of a £42million per year prisoner escort contract for London and the East of England from the Ministry of Justice.

Panmure said: “This will help underpin future organic growth while decisions in the world of public sector outsourcing appear to be gathering pace. Serco is well placed to benefit from greater levels of outsourcing.” Security services group G4S rose 3½p to 256½p.